2021 Form 10-K Financial Statement

#000156459021014377 Filed on March 19, 2021

View on sec.gov

Income Statement

Concept 2021 2020 Q1 2020
Revenue $770.8M $183.6M $696.3M
YoY Change 10.7% 12.16% 14.44%
Cost Of Revenue $224.7M $56.70M $215.6M
YoY Change 4.25% 20.13% 24.18%
Gross Profit $546.0M $126.9M $480.7M
YoY Change 13.59% 8.93% 10.56%
Gross Profit Margin 70.84% 69.12% 69.04%
Selling, General & Admin $382.4M $102.3M $420.4M
YoY Change -9.04% 5.68% 3.73%
% of Gross Profit 70.03% 80.61% 87.46%
Research & Development $201.3M $53.20M $199.8M
YoY Change 0.76% 28.5% 21.98%
% of Gross Profit 36.86% 41.92% 41.56%
Depreciation & Amortization $68.10M $17.30M $58.20M
YoY Change 17.01% 49.14% 25.7%
% of Gross Profit 12.47% 13.63% 12.11%
Operating Expenses $583.7M $155.5M $620.2M
YoY Change -5.88% 12.52% 8.99%
Operating Profit -$37.64M -$28.60M -$139.5M
YoY Change -73.01% 31.8% 3.9%
Interest Expense -$7.000M -$1.200M -$2.300M
YoY Change 204.35% 1100.0% 627.85%
% of Operating Profit
Other Income/Expense, Net -$4.584M -$300.0K -$3.466M
YoY Change 32.26% -111.54% -358.85%
Pretax Income -$42.23M -$30.10M -$142.9M
YoY Change -70.46% 56.77% 7.3%
Income Tax $1.207M $300.0K $1.410M
% Of Pretax Income
Net Earnings -$43.43M -$30.40M -$144.3M
YoY Change -69.91% 54.31% 7.23%
Net Earnings / Revenue -5.64% -16.56% -20.73%
Basic Earnings Per Share -$0.28
Diluted Earnings Per Share -$278.6K -$202.7K -$976.3K
COMMON SHARES
Basic Shares Outstanding 155.8K 150.7M
Diluted Shares Outstanding 155.8K

Balance Sheet

Concept 2021 2020 Q1 2020
SHORT-TERM ASSETS
Cash & Short-Term Investments $595.1M $195.6M $195.6M
YoY Change 204.24% -10.08% -10.07%
Cash & Equivalents $595.1M $195.6M $195.6M
Short-Term Investments
Other Short-Term Assets $55.90M $4.247M $52.70M
YoY Change 6.07% 31.2% 46.8%
Inventory
Prepaid Expenses $16.42M
Receivables $228.3M $209.4M $209.4M
Other Receivables $0.00 $0.00 $0.00
Total Short-Term Assets $879.3M $457.7M $457.7M
YoY Change 92.11% 6.81% 6.79%
LONG-TERM ASSETS
Property, Plant & Equipment $354.4M $191.0M $388.8M
YoY Change -8.85% 38.69% 182.35%
Goodwill $18.74M
YoY Change 0.0%
Intangibles
YoY Change
Long-Term Investments
YoY Change
Other Assets $74.40M $31.98M $69.60M
YoY Change 6.9% 189.53% 6.75%
Total Long-Term Assets $472.4M $502.3M $502.3M
YoY Change -5.95% 126.65% 126.67%
TOTAL ASSETS
Total Short-Term Assets $879.3M $457.7M $457.7M
Total Long-Term Assets $472.4M $502.3M $502.3M
Total Assets $1.352B $960.0M $960.0M
YoY Change 40.8% 47.65% 47.65%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $4.500M $16.75M $16.80M
YoY Change -73.21% 8.56% 9.09%
Accrued Expenses $114.5M $98.60M $98.60M
YoY Change 16.13% 58.52% 58.52%
Deferred Revenue $407.5M
YoY Change 15.24%
Short-Term Debt $0.00 $0.00 $0.00
YoY Change
Long-Term Debt Due $49.90M $54.60M $54.60M
YoY Change -8.61% 92.93% 92.93%
Total Short-Term Liabilities $612.8M $577.4M $577.4M
YoY Change 6.13% 24.66% 24.65%
LONG-TERM LIABILITIES
Long-Term Debt $358.0M $40.00M $123.4M
YoY Change 190.11% 0.0% 45.86%
Other Long-Term Liabilities $229.8M $14.28M $236.8M
YoY Change -2.96% -71.16% 233.52%
Total Long-Term Liabilities $587.8M $54.28M $360.2M
YoY Change 63.19% -39.36% 131.49%
TOTAL LIABILITIES
Total Short-Term Liabilities $612.8M $577.4M $577.4M
Total Long-Term Liabilities $587.8M $54.28M $360.2M
Total Liabilities $1.201B $937.6M $937.6M
YoY Change 28.05% 51.54% 51.52%
SHAREHOLDERS EQUITY
Retained Earnings -$1.278B
YoY Change 12.73%
Common Stock $1.302B
YoY Change 11.63%
Preferred Stock
YoY Change
Treasury Stock (at cost) $1.177M
YoY Change 0.0%
Treasury Stock Shares $3.053M
Shareholders Equity $151.1M $22.36M $22.40M
YoY Change
Total Liabilities & Shareholders Equity $1.352B $960.0M $960.0M
YoY Change 40.8% 47.65% 47.65%

Cashflow Statement

Concept 2021 2020 Q1 2020
OPERATING ACTIVITIES
Net Income -$43.43M -$30.40M -$144.3M
YoY Change -69.91% 54.31% 7.23%
Depreciation, Depletion And Amortization $68.10M $17.30M $58.20M
YoY Change 17.01% 49.14% 25.7%
Cash From Operating Activities $196.8M $15.00M $44.71M
YoY Change 340.22% -52.08% -19.18%
INVESTING ACTIVITIES
Capital Expenditures -$16.50M -$2.700M $5.452M
YoY Change -402.64% -25.0% -63.18%
Acquisitions
YoY Change
Other Investing Activities -$107.0K $100.0K -$105.0K
YoY Change 1.9% -94.74% -92.58%
Cash From Investing Activities -$16.38M -$2.600M -$13.30M
YoY Change 23.22% 44.44% -17.68%
FINANCING ACTIVITIES
Cash Dividend Paid
YoY Change
Common Stock Issuance & Retirement, Net $28.86M $29.39M
YoY Change -1.82% 34.44%
Debt Paid & Issued, Net
YoY Change
Cash From Financing Activities 218.7M -17.60M -53.42M
YoY Change -509.38% 43.09% 80.66%
NET CHANGE
Cash From Operating Activities 196.8M 15.00M 44.71M
Cash From Investing Activities -16.38M -2.600M -13.30M
Cash From Financing Activities 218.7M -17.60M -53.42M
Net Change In Cash 399.9M -5.200M -22.17M
YoY Change -1903.9% -130.23% -337.62%
FREE CASH FLOW
Cash From Operating Activities $196.8M $15.00M $44.71M
Capital Expenditures -$16.50M -$2.700M $5.452M
Free Cash Flow $213.3M $17.70M $39.26M
YoY Change 443.37% -49.28% -3.09%

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CY2021 us-gaap Payments To Acquire Intangible Assets
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CY2019 us-gaap Net Cash Provided By Used In Investing Activities
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CY2021 us-gaap Net Cash Provided By Used In Financing Activities
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CY2020 us-gaap Net Cash Provided By Used In Financing Activities
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CY2019 us-gaap Net Cash Provided By Used In Financing Activities
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CY2021 us-gaap Right Of Use Asset Obtained In Exchange For Finance Lease Liability
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CY2019 us-gaap Right Of Use Asset Obtained In Exchange For Finance Lease Liability
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CY2019Q1 us-gaap Cash And Cash Equivalents At Carrying Value
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CY2019Q1 us-gaap Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents
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CY2018Q1 us-gaap Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents
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CY2019Q1 us-gaap Restricted Cash
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CY2020Q1 us-gaap Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents
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CY2019Q1 us-gaap Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents
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CY2019 box Deferred Sales Commissions Costs
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CY2021 us-gaap Amortization Of Deferred Sales Commissions
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CY2021 us-gaap Amortization Of Deferred Sales Commissions
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CY2020 us-gaap Amortization Of Deferred Sales Commissions
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CY2021 us-gaap Use Of Estimates
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<p style="margin-top:6pt;margin-bottom:0pt;margin-left:5.24%;text-indent:0%;font-weight:bold;font-style:italic;font-family:Times New Roman;font-size:10pt;text-transform:none;font-variant: normal;">Use of Estimates</p> <p style="margin-top:6pt;margin-bottom:0pt;text-indent:5.24%;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">The preparation of consolidated financial statements in conformity with U.S. GAAP requires management to make, on an ongoing basis, estimates and assumptions that affect the amounts reported and disclosed in the financial statements and the accompanying notes. Actual results could differ from these estimates. Such estimates include, but are not limited to, the determination of the allowance for accounts receivable, fair value of acquired intangible assets and goodwill, useful lives of acquired intangible assets and property and equipment, the liability and equity allocation of our convertible senior notes, timing and costs associated with our asset retirement obligations, the nature and timing of satisfaction of performance obligations, estimate of standalone selling price allocation included in contracts with multiple performance obligations, the estimated expected benefit period for deferred commissions, the estimated useful life of capitalized internally developed software costs, observable price changes of non-marketable equity securities, the incremental borrowing rate we use to determine our lease liabilities, fair values of stock-based awards, legal contingencies, the valuation of deferred income tax assets, and unrecognized tax benefits, among others. Management bases its estimates on historical experience and on various other assumptions which management believes to be reasonable, the results of which form the basis for making judgments about the carrying values of assets and liabilities.</p> <p style="margin-top:12pt;margin-bottom:0pt;text-indent:5.24%;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">In accordance with our property and equipment policy, we review the estimated useful lives of our fixed assets on an ongoing basis. A review of our fixed assets indicated that the actual lives of certain furniture and fixtures were longer than previously estimated useful lives used for depreciation purposes in our financial statements. As a result, effective September 1, 2018, we changed the estimated useful lives of certain furniture and fixtures to better reflect the estimated periods during which these assets will remain in service. The estimated useful lives of these assets previously depreciated for three years have now been increased to five years. This change was made prospectively for all existing furniture and fixtures as of September 1, 2018 and will continue to apply to all furniture and fixtures purchased thereafter. The effect of this change in estimate to net loss and net loss per share was not material in fiscal year 2019.</p>
CY2021 box Number Of Revenue Sources
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CY2021 box Deferred Sales Commissions Costs
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CY2020 box Deferred Sales Commissions Costs
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CY2019 box Deferred Sales Commissions Costs
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CY2019 us-gaap Amortization Of Deferred Sales Commissions
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CY2021 us-gaap Concentration Risk Credit Risk
ConcentrationRiskCreditRisk
<p style="margin-top:18pt;margin-bottom:0pt;margin-left:5.24%;text-indent:0%;font-weight:bold;font-style:italic;font-family:Times New Roman;font-size:10pt;text-transform:none;font-variant: normal;">Certain Risks and Concentrations</p> <p style="margin-top:6pt;margin-bottom:0pt;text-indent:5.24%;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Our financial instruments that are exposed to concentrations of credit risk consist primarily of cash and cash equivalents and accounts receivable. Although we deposit our cash with multiple financial institutions, our deposits, at times, may exceed deposit insurance coverage limits.</p> <p style="margin-top:12pt;margin-bottom:0pt;text-indent:5.24%;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">We sell to a broad range of customers. Our revenue is derived substantially from the United States across a multitude of industries. Accounts receivable are derived from the delivery of our services to customers primarily located in the United States. We accept and settle our accounts receivable using credit cards, electronic payments and checks. A majority of our lower dollar value invoices are settled by credit card on or near the date of the invoice. We do not require collateral from customers to secure accounts receivable. We maintain an allowance for doubtful accounts based upon the expected collectability, which takes into consideration specific customer creditworthiness and current economic trends. We believe collections of our accounts receivable are probable based on the size, industry diversification, financial condition and past transaction history of our customers. As of January 31, 2021 and 2020, one reseller, which is also a customer, accounted for more than 10% of total accounts receivable. One reseller, which is also a customer, represented 10% and 11% of revenue for the years ended January 31, 2020 and 2019, respectively. No single customer represented over 10% of revenue in the year ended January 31, 2021.</p> <p style="margin-top:12pt;margin-bottom:0pt;text-indent:5.24%;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">We serve our customers and users from data center facilities operated by third parties. In order to reduce the risk of down time of our subscription services, we have established data centers and third-party cloud computing and hosting providers in various locations in the United States and abroad. We have internal procedures to restore services in the event of disaster at any one of our current data center facilities. Even with these procedures for disaster recovery in place, our cloud services could be significantly interrupted during the implementation of the procedures to restore services.</p> <p style="margin-top:18pt;margin-bottom:0pt;margin-left:5.24%;text-indent:0%;font-weight:bold;font-style:italic;font-family:Times New Roman;font-size:10pt;text-transform:none;font-variant: normal;">Geographic Locations</p> <p style="margin-top:6pt;margin-bottom:0pt;text-indent:5.24%;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">For the years ended January 31, 2021, 2020 and 2019, revenue attributable to customers in the United States was 72%, 75% and 77%, respectively. For the years ended January 31, 2021 and 2020, revenue attributable to customers in Japan was 14% and 10%, respectively. No country outside of the United States comprised 10% or greater of our revenue for the year ended January 31, 2019. </p> <p style="margin-top:12pt;margin-bottom:0pt;text-indent:5.24%;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Substantially all of our net assets are located in the United States. As of January 31, 2021 and 2020, property and equipment located in the United States was approximately 96% and 94%, respectively.</p>
CY2021 us-gaap Concentration Risk Credit Risk
ConcentrationRiskCreditRisk
<p style="margin-top:18pt;margin-bottom:0pt;margin-left:5.24%;text-indent:0%;font-weight:bold;font-style:italic;font-family:Times New Roman;font-size:10pt;text-transform:none;font-variant: normal;">Certain Risks and Concentrations</p> <p style="margin-top:6pt;margin-bottom:0pt;text-indent:5.24%;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Our financial instruments that are exposed to concentrations of credit risk consist primarily of cash and cash equivalents and accounts receivable. Although we deposit our cash with multiple financial institutions, our deposits, at times, may exceed deposit insurance coverage limits.</p> <p style="margin-top:12pt;margin-bottom:0pt;text-indent:5.24%;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">We sell to a broad range of customers. Our revenue is derived substantially from the United States across a multitude of industries. Accounts receivable are derived from the delivery of our services to customers primarily located in the United States. We accept and settle our accounts receivable using credit cards, electronic payments and checks. A majority of our lower dollar value invoices are settled by credit card on or near the date of the invoice. We do not require collateral from customers to secure accounts receivable. We maintain an allowance for doubtful accounts based upon the expected collectability, which takes into consideration specific customer creditworthiness and current economic trends. We believe collections of our accounts receivable are probable based on the size, industry diversification, financial condition and past transaction history of our customers. As of January 31, 2021 and 2020, one reseller, which is also a customer, accounted for more than 10% of total accounts receivable. One reseller, which is also a customer, represented 10% and 11% of revenue for the years ended January 31, 2020 and 2019, respectively. No single customer represented over 10% of revenue in the year ended January 31, 2021.</p> <p style="margin-top:12pt;margin-bottom:0pt;text-indent:5.24%;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">We serve our customers and users from data center facilities operated by third parties. In order to reduce the risk of down time of our subscription services, we have established data centers and third-party cloud computing and hosting providers in various locations in the United States and abroad. We have internal procedures to restore services in the event of disaster at any one of our current data center facilities. Even with these procedures for disaster recovery in place, our cloud services could be significantly interrupted during the implementation of the procedures to restore services.</p> <p style="margin-top:18pt;margin-bottom:0pt;margin-left:5.24%;text-indent:0%;font-weight:bold;font-style:italic;font-family:Times New Roman;font-size:10pt;text-transform:none;font-variant: normal;">Geographic Locations</p> <p style="margin-top:6pt;margin-bottom:0pt;text-indent:5.24%;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">For the years ended January 31, 2021, 2020 and 2019, revenue attributable to customers in the United States was 72%, 75% and 77%, respectively. For the years ended January 31, 2021 and 2020, revenue attributable to customers in Japan was 14% and 10%, respectively. No country outside of the United States comprised 10% or greater of our revenue for the year ended January 31, 2019. </p> <p style="margin-top:12pt;margin-bottom:0pt;text-indent:5.24%;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Substantially all of our net assets are located in the United States. As of January 31, 2021 and 2020, property and equipment located in the United States was approximately 96% and 94%, respectively.</p>
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CY2019 us-gaap Foreign Currency Transaction Loss Before Tax
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CY2021 box Highly Liquid Investments Initial Maturity Period
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CY2021 box Impairment Adjustment
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CY2019 us-gaap Advertising Expense
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CY2021 us-gaap Contract With Customer Liability Revenue Recognized
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CY2020 us-gaap Contract With Customer Liability Revenue Recognized
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CY2021Q1 us-gaap Hosting Arrangement Service Contract Implementation Cost Capitalized After Accumulated Amortization
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CY2020Q1 us-gaap Hosting Arrangement Service Contract Implementation Cost Capitalized After Accumulated Amortization
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CY2021Q1 us-gaap Prepaid Expense And Other Assets Current
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CY2021Q1 us-gaap Hosting Arrangement Service Contract Implementation Cost Capitalized Accumulated Amortization
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CY2021 us-gaap Asset Impairment Charges
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CY2020Q1 us-gaap Capitalized Computer Software Accumulated Amortization
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CY2021 us-gaap Depreciation
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CY2021Q1 us-gaap Lessee Finance Lease Term Of Contract1
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CY2021 box Non Cancellable Lease Expiration Year
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CY2021 box Lessee Operating Lease Or Financing Lease Lease Not Yet Commenced Description
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We did not have any operating leases or finance leases that have not yet commenced as of January 31, 2021
CY2021Q1 box Lessee Operating Lease Or Financing Lease Lease Not Yet Commenced
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49883000
CY2019 us-gaap Unrecognized Tax Benefits Increases Resulting From Current Period Tax Positions
UnrecognizedTaxBenefitsIncreasesResultingFromCurrentPeriodTaxPositions
11569000
CY2021Q1 us-gaap Unrecognized Tax Benefits
UnrecognizedTaxBenefits
77427000
CY2020Q1 us-gaap Deferred Tax Liabilities Goodwill And Intangible Assets Goodwill
DeferredTaxLiabilitiesGoodwillAndIntangibleAssetsGoodwill
424000
CY2020Q1 us-gaap Deferred Tax Liabilities Other
DeferredTaxLiabilitiesOther
28000
CY2021Q1 us-gaap Deferred Income Tax Liabilities
DeferredIncomeTaxLiabilities
65796000
CY2020Q1 us-gaap Deferred Income Tax Liabilities
DeferredIncomeTaxLiabilities
52851000
CY2021Q1 us-gaap Deferred Tax Assets Liabilities Net
DeferredTaxAssetsLiabilitiesNet
1748000
CY2020Q1 us-gaap Unrecognized Tax Benefits
UnrecognizedTaxBenefits
63560000
CY2020Q1 us-gaap Severance Costs1
SeveranceCosts1
1650000
CY2020Q1 us-gaap Payments For Restructuring
PaymentsForRestructuring
600000
CY2021 us-gaap Number Of Operating Segments
NumberOfOperatingSegments
1
CY2021 us-gaap Defined Contribution Plan Maximum Annual Contributions Per Employee Percent
DefinedContributionPlanMaximumAnnualContributionsPerEmployeePercent
1

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